Modi, Putin talk global energy, food markets, ways to boost bilateral trade

The telephone conversation came three days after Modi attended the outreach sessions of the G7 Summit in Germany, where leaders of the seven of the world’s largest economies discussed ways to increase pressure on Russia through sanctions to end the war in Ukraine.

Prime Minister Narendra Modi and Russian President Vladimir Putin discussed the state of the global energy and food markets on Friday and focused on ways to encourage bilateral trade in agricultural goods, fertilisers and pharmaceutical products.

Prime Minister Narendra Modi and Russian President Vladimir Putin reviewed the implementation of decisions made during Putin’s visit to India last December for the annual bilateral summit. (AP)

Putin emphasised that Russia remains a “reliable producer and supplier” of grains, fertilisers and energy for India while lashing out at “illegitimate sanctions” against his country that have “exacerbated an already difficult situation”, according to a readout from the Kremlin.

The telephone conversation between the two leaders came three days after the Indian prime minister attended the outreach sessions of the G7 Summit in Germany, where leaders of the seven of the world’s largest economies discussed ways to increase pressure on Russia through sanctions to end the war in Ukraine. Among the measures being looked at by G7 is a ban on transporting Russian oil sold above a certain price.

The two leaders reviewed the implementation of decisions made during Putin’s visit to India last December for the annual bilateral summit. “In particular, they exchanged ideas on how bilateral trade in agricultural goods, fertilisers and pharma products could be encouraged further,” an official statement from the Indian side said.

“The leaders also discussed global issues, including the state of the international energy and food markets,” it said.

“In the context of the ongoing situation in Ukraine, the prime minister reiterated India’s long-standing position in favour of dialogue and diplomacy,” it added, without giving details. The leaders agreed to maintain regular consultations on global and bilateral issues.

Putin “stressed that Russia has been and remains a reliable producer and supplier” of grain, fertilisers and energy, including to Indian partners, according to the Kremlin readout. A “significant increase” in bilateral trade, including mutual deliveries of agricultural products, was noted with satisfaction, the readout said.

The Russian leader contended that “systemic mistakes” by some countries led to “disruption of the entire architecture of free trade in food products and provoked a significant increase in their value”. He added that “illegitimate sanctions” had exacerbated an already difficult situation and had a “negative impact on the global energy market”.

The readout said that at the request of Modi, Putin briefed him on Russia’s “special military operation” in Ukraine. Putin also referred to the “dangerous and provocative nature” of the position adopted by Kyiv and its “Western patrons to escalate the crisis and disrupt efforts to resolve it politically and diplomatically”.

The fourth phone conversation between the two leaders this year was initiated by the Russian side. They spoke on February 24, the day Russia launched the invasion of Ukraine, and Putin had briefed Modi at the time on the latest developments. They subsequently spoke on March 2 and March 7, when the Indian side was focused on getting more than 20,000 of its nationals out of areas in Ukraine witnessing intense fighting and shelling.

During all these conversations, Modi appealed for an immediate cessation of violence and called on all sides to return to the path of diplomacy and dialogue. He also said the differences between Russia and NATO can only be resolved through “honest and sincere dialogue”. During the conversation on March 7, Modi suggested a direct conversation between Putin and Ukrainian President Volodymyr Zelenskyy “may greatly assist the ongoing peace efforts”.

India has refrained from publicly criticising the invasion given the long-standing strategic and defence ties between New Delhi and Moscow. It has, however, called for respecting the sovereignty and territorial integrity of all states and sought an independent investigation into the killing of civilians in the Ukrainian town of Bucha.

In the face of growing pressure from the US and Western countries not to accelerate purchases of discounted Russian oil and commodities, Indian officials have said all decisions on crude oil deals will be made to ensure the country’s energy security.

According to data from analytics firm Kpler, Indian firms have gone from not importing any Russian crude during January and February to procuring almost 60 million barrels so far this year. Russia has historically never been a major energy supplier for India, accounting for less than 2% of annual imports and the overall figure for 2021 was about 12 million barrels.

Russia’s shipments to China have also increased since the war in Ukraine, while data from Kpler shows it has now become India’s second-largest source of crude after Iraq. Contracts by Indian firms for Urals crude, the type of oil most commonly exported by Russia, for March, April, May and June and projections for deliveries in July and August total about 66.5 million barrels.

The US special envoy for energy affairs, Amos Hochstein, recently told a US Senate sub-committee that he had told Indian officials that such purchases can’t be banned but they should not “go too far, and don’t look like you’re taking advantage of the pain that is being felt in European households and the United States”.